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Often homeowners want to know how quickly they can initiate a home refinance on the heels of a bankruptcy. The rules on this change, so we’ll tackle this often asked question here.

gavel on legal books for refinance after bankruptcyGenerally speaking, here’s the scoop:

  • Chapter 7 – a minimum of two years must have elapsed since the discharge date.
  • Chapter 13 – court must permit you to proceed. Typically, this depends on whether you’ve made your required payments on time, and one year of the payout period has elapsed.

Other factors include:

  • Was the bankruptcy caused by financial mismanagement? In other words, your spending?
  • Was bankruptcy a result of a hardship such as an illness, loss of job, or another one-off scenario?
  • How much time has elapsed of the pay-out period?
  • How have you responded since—have you been paying on time?
  • Have you taken measures to reestablish your credit?
  • Do you have written permission from the bankruptcy court to pursue a new transaction?

Not sure where to start? Reach out to Golden Oak Lending today to set you on the right path!